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Bond J is a four percent coupon bond.Bond K is a 12% coupon bond. both bonds have eight years to maturity, making semi annual payments,
Bond J is a four percent coupon bond.Bond K is a 12% coupon bond. both bonds have eight years to maturity, making semi annual payments, and have a YTM of 7%. if interest rates suddenly rise by 2 percent what is percentage change of these bonds.? what if interest rates fall by 2 percent instead. what does this problem tell you about the interest rate risk of lower coupon bond? Tell me the answer please
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